Austerity Europe: who faces the cuts

As governments across the continent slash child benefit and freeze pay to reduce deficits,
Ian Traynor and
Katie Allen examine which countries face the most stringent measures

Protesters clash with riot police at the finance ministry in Athens. A summer of discontent has been predicted as public spending is slashed across Europe. Photograph: Louisa Gouliamaki/AFP/Getty Images

UK

Economic growth: 1.2% this year, 2.1% next

National debt as percentage of GDP: 62.1%

Budget deficit as percentage of GDP: 10.4%

Cuts: £6.2bn of cuts already announced, £50bn expected by early 2015

Outlook: Newly established Office for Budget Responsibility will evaluate success in reducing deficit. OBR publishes first forecasts on Monday and is likely to have lower growth outlook than previous government, making job far harder

Ireland

Economic growth: Recession of -0.9% this year, 3% growth next year

National debt as percentage of GDP: 77.3%

Budget deficit as percentage of GDP: 14.7%Cuts: Austerity package includes public-sector pay cuts of up to 20%, plus reductions in child benefit, tax rises, and nurses, teachers, and police officers being laid off

Portugal

Cuts: Income, corporate and VAT tax rises coupled with spending cuts aimed at halving budget deficit by next year

Outlook: Cross-party consensus has shored up José Sócrates' vulnerable minority government. But markets see Portugal as sovereign-debt risk, so it may be most likely country to dip into EU's €750bn (£640bn) fund for stabilising euro

Spain

Economic growth: Recession of -0.4% this year, growth of 0.8% next

National debt as percentage of GDP: 64.9%

Budget deficit as percentage of GDP: 10.1%

Cuts: €15bn slashed from spending this year and next to reduce deficit by more than 4% of GDP. Cuts to civil service pay, pensions, investment and child benefits. Europe's highest jobless rate and doubt over its ability to service debt

Outlook: Socialist government of Zapatero may be on last legs and could fall in the autumn after a hot summer of strikes and protests. Big debt repayment due in July

Germany

Economic growth: 1.2% this year, 1.6% next

National debt as percentage of GDP: 78.8%

Budget deficit as percentage of GDP: 5%

Cuts: €80bn of spending cuts over four years just announced

Outlook: Chancellor Angela Merkel wobbling on various fronts. Big protests against cuts expected in Stuttgart today. Her centre-right coalition is shaky. Crunch point on 30 June; if her nominee for German president loses, she may be fatally wounded

Hungary

Economic growth: 0% this year, 2.8% next

National debt as percentage of GDP: 78.9%

Budget deficit as percentage of GDP: 4.1%

Cuts: New centre-right government has set a more spending cuts following a balance of payments crisis two years ago that necessitated €20bn aid from the EU, IMF and World Bank

Outlook: Officials spooked markets last week by declaring that Hungary could be the new Greece, struggling to service its debt

Italy

Economic growth: 0.8% this year, 1.4% next

National debt as percentage of GDP: 118.2%

Budget deficit as percentage of GDP: 5.3%

Cuts: Slashing spending by €24bn over three years to halve deficit by freezing public-sector pay and hiring, 10% cuts in all ministries and pay cuts for top civil servants

Outlook: Finance minister Giulio Tremonti is well regarded. Biggest threat to package comes not from the streets but perhaps from premier Silvio Berlusconi, who might fear for ratings

Outlook: Greece is prime source of euro crisis, careering towards default on its sovereign debt after years of fiddled figures and profligate deficit spending. Contested rescue fund has won it a respite and restored liquidity. Jury is still out

Latvia

Economic growth: Recession of -3.5% this year, growth of 3.3% next

National debt as percentage of GDP: 48.5%

Budget deficit as percentage of GDP: 8.6%-9.9%

Belt-tightening: Latvia has been in the throes of draconian budget cuts for past two years, with hospitals and schools being closed and public-sector wages slashed by up to a quarter. Required Hungary-style balance of payments support from the EU and IMF, conditional on large spending cuts

Outlook: In the financial crash two years ago, Latvia went dramatically from boom to bust, from the highest growth rates in the EU to the deepest recession of 18% last year. With memories of Soviet living standards still fresh, however, the public is resilient and Latvia is weathering a crisis on a scale that would have triggered mayhem in western Europe